How are the EIDL loan amounts calculated?

Loan Amount The standard calculation is “Gross Receipts” of 2019 minus cost of goods sold (COGS) times 2. If your business has ‘cost of goods sold’ (COGS), that comes off the gross receipts first.

How do you calculate revenue reduction?

Compare annual gross receipts Subtract your 2020 gross receipts from your 2019 gross receipts, and divide that amount by your 2019 gross receipts. If the number is 0.25 or greater, then your business can demonstrate a 25\% decrease in annual revenue.

Does Eidl count as income?

If you received the EIDL loan, taxes on these funds work like any other business loan taxation. In other words, funds from the EIDL are not reported as taxable business income on your tax return. You can also lower your tax liability by deducting any expenses covered by the use of these funds.

How do you calculate cost of goods sold for Eidl?

Cost of Goods Sold for the Twelve(12) Month Prior to the Date of the Disaster (January 31, 2020)…The basic COST OF GOODS SOLD (COGS) formula is:

1. Beginning Inventory Costs (at the beginning of the year)
2. Plus Additional Inventory Costs.
3. Minus Ending Inventory (at the end of the year)
4. Equals Cost of Goods Sold.

How much can I borrow Eidl?

You can borrow up to $200,000 without a personal guarantee. First-year tax returns are not required and approval can be based on credit score. You do not have to prove you could not get credit elsewhere. Loans of $25,000 or less require no collateral.

How is SBA PPP calculated?

You’ll use your gross income—not your net income—to calculate your PPP loan amount. Take your gross income (not to exceed $100,000), divide it by 12, and multiply that number by 2.5 to get your loan amount.

How do you calculate maximum loan amount?

Maximum monthly payment (PITI) is calculated by taking the lower of these two calculations:

1. Monthly Income X 28\% = monthly PITI.
2. Monthly Income X 36\% – Other loan payments = monthly PITI.

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